A Maine-based group announced Wednesday that it has purchased the former Old Town pulp mill property with plans to use it as a “wood fiber-based complex” with multiple tenants.
OTM Holdings LLC, which identified itself as a “group of companies committed to the revitalization of Maine’s forest based industry,” purchased the mill complex from MFGR, LLC, the same liquidation firm that bought the shuttered Lincoln paper mill, according to a news release.
Terms of the sale were not released Wednesday.
“The acquisition saves this important asset from the demolition recently experienced at other shuttered mills and the innovative redevelopment program for the mill will have broad economic impacts for the region, provide jobs and support to Maine’s forest industry,” said MFGR, LLC partners Bob Maroney of Gordon Brothers, and Bill Firestone of CRG in a joint statement.
The Old Town facility has pulp making and biofuel research equipment used by the University of Maine, 400,000 square feet of warehouse space, a wastewater treatment plant and a 4,000-foot frontage on the Penobscot River.
The property has changed hands often in recent years. Expera Specialty Solutions of Kaukauna, Wisconsin, acquired the assets of the former Old Town Fuel and Fiber pulp mill for $10.5 million on Dec. 5, 2014, out of a bankruptcy auction. Expera announced in late September that it would close the facility at the end of 2015.
In January 2016, MFGR LLC, a consortium of liquidators that includes the Boston-based Gordon Brothers Group, PPL Group LLC of Illinois, Rabin Worldwide of California and Capital Recovery Group LLC of Connecticut, bought the property for an undisclosed price.
BDN writer Darren Fishell contributed to this report.
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